Safe and Sound

HAWAIIAN AIRLINES

Founded in 1948, HAWAIIAN AIRLINES is an NCUA-insured credit union headquartered in Honolulu, HI. The credit union holds $23.2 million in assets, according to June 30, 2017, regulatory filings.

Members have $6.5 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $6.5 million. HAWAIIAN AIRLINES's 3,175 members currently have $21.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAWAIIAN AIRLINES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It acts as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, HAWAIIAN AIRLINES received a score of 4 out of a possible 30 points, lower than the national average of 15.26.

HAWAIIAN AIRLINES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 7.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a future failure.

HAWAIIAN AIRLINES scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.15.

A below-average ratio of troubled assets of 3.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

HAWAIIAN AIRLINES scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.31.

HAWAIIAN AIRLINES had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers in this area.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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